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The Debt Ceiling Is A Continuing Political Issue: Would It Be Better To Repeal The Debt Ceiling?

ArmchairPolitician.NationalDebt, September 23, 2017, By Brad Peery, WWW.ArmchairPolitician.US,

ArmchairPolitician.US@gmail.com

*The Washington Post has reported that President Trump and Senator Schumer have a verbal agreement to permanently remove the debt ceiling, and at the same time provide funding for hurricane relief. An agreement is targeted for December 8, 2017, and any agreement will need to be confirmed by the Congress. The possible agreement is a slap in the face to Republicans, and the debt ceiling deadlines are continuing thorns in the side of those in Congress, because of the political infighting they engender.

It is reported that Vice President Pence is open to changes he considers in line with the “Gephardt Rule”, a parliamentary rule making it easier to tie raising the debt ceiling with Congress passing a budget. The rule is named after former House majority leader Richard A. Gephardt (D-Mo.). This could be another way to get around continually having to raise the debt ceiling separately.

Article 1 of the Constitution sets up Congress’s powers, giving it the authority to write and pass legislation and appropriate government money. Because the U.S. government spends money in excess of tax and fee receipts, it must borrow to fund the deficit. If the borrowing exceeds the debt ceiling, the debt ceiling must be raised. This happens very often. These votes are often politicized and can cause uncertainty in the financial markets.

Treasury Secretary Steven Mnuchin has suggested scrapping the existing debt-limit process and replacing it with one that automatically lifts the borrowing limit every time Congress appropriates future spending.
*Trump, Schumer agree to pursue plan to repeal the debt ceiling
Washington Post, By Damian Paletta and Ashley Parker September 7, 2017

ArmchairPolitician.US Opinion:
Having a debt ceiling that needs to be raised periodically is attractive to conservatives. This gives them an opportunity to publicize the fact that the government continues to increase the national debt, with the risks that carries for future economic growth and for future generations.

President Trump became frustrated at the inaction of the Congress in passing his agenda legislation, and the discussion with Senator Schumer postponed the delays that the hurricanes and the debt ceiling approval would cause the Congress. Tax reductions for businesses and persons is the primary short-term legislative objective, once healthcare is decided one way or the other by September 30, 2017. It remains to be seen whether Trump can get the Republicans to enact tax reform, or whether he tries to strike a deal with Schumer and the Democrats.

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